Recency-frequency-monetary (RFM) analysis

Cluster analysis

Cluster analysis is an exploratory tool designed to reveal natural groupings (or clusters) within your data. For example, it can identify different groups of customers based on various demographic and purchasing characteristics.

Prospect profile

Prospect Profiles uses results from a previous or test campaign to create descriptive profiles. You can use the profiles to target specific groups of contacts in future campaigns. For example, based on the results of a test mailing, the direct marketing division of a company wants to generate profiles of the types of people most likely to respond to a certain type of offer, based on demographic information. Marketers can use those results to determine the types of mailing lists they should use for similar offers.

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Response rate table

The table summarizes results by decile rank in descending order (top 10%, top 20%, etc.). The cumulative response rate is the combined percentage of positive responses in the current and all preceding rows. Since results are displayed in descending order of response rates, this is therefore the combined response rate for the current decile and all deciles with a higher response rate. The table is color-coded based on the values you entered for target response rate and maximum number of contacts.

SPSS Direct Marketing Screenshots

Opening dialog box

The module's opening dialog box offers six specifically chosen procedures to assist database and direct marketers with data preparation and analysis. To better understand your contacts, choose from RFM analysis,
clustering or prospect profiling. If you are ready to improve your existing campaigns, select from postal code response rate, propensity to purchase or control package test.

Recency-frequency-monetary (RFM) analysis

The RFM analysis technique helps identify existing customers who are most likely to respond to a new offer.

Cluster analysis

Cluster analysis is an exploratory tool designed to reveal natural groupings (or clusters) within your data. For example, it can identify different groups of customers based on various demographic and purchasing characteristics.

Prospect profile

Prospect Profiles uses results from a previous or test campaign to create descriptive profiles. You can use the profiles to target specific groups of contacts in future campaigns. For example, based on the results of a test mailing, the direct marketing division of a company wants to generate profiles of the types of people most likely to respond to a certain type of offer, based on demographic information. Marketers can use those results to determine the types of mailing lists they should use for similar offers.

x

x

Response rate table

The table summarizes results by decile rank in descending order (top 10%, top 20%, etc.). The cumulative response rate is the combined percentage of positive responses in the current and all preceding rows. Since results are displayed in descending order of response rates, this is therefore the combined response rate for the current decile and all deciles with a higher response rate. The table is color-coded based on the values you entered for target response rate and maximum number of contacts.

Cumulative response rate chart

The chart of cumulative response rate and cumulative number of contacts in each decile is a visual representation of the same information displayed in the response rate table.